Kohl’s Q4 profit disappoints
Menomonee Falls, Wis. – Kohl’s Corp.’s reported disappointing fourth-quarter results amid markdowns during the holiday period and increased shipping costs for its e-commerce business.
The chain posted a profit of $334 million for the quarter ended Feb. 1, down from $378 million a year earlier. Total sales dropped 3.8% to about $6.1 billion from $6.34 billion. Same-store sales were down 2%. Kohl’s cited the impact of the 53rd week in fiscal 2012 as a driver of its declines.
According to Kohl’s, the extra week accounted for an additional $169 million in total sales and $15 million in net earnings that were not obtained in the 52-week fiscal 2013.
“We were pleased with our sales during the November and December holiday season as the customer responded favorably to our merchandise and values,” said Kevin Mansell, chairman, president and CEO of Kohl’s. “Despite increased shipping costs related to our e-commerce business, we were able to achieve our gross margin guidance for the quarter. We believe our inventory levels and assortment are well-positioned as we transition into the spring season."
For the full year, net income declined 10% to $889 million from $986 million a year-ago. Total sales dropped 1.3% to $19 billion from $19.2 billion during the year. Same-store sales fell 1.2%.
For fiscal 2014, Kohl’s expects total sales increases of 0.5 to 2.5% ad same-store sales increases of 0 to 2%.
P&G unveils new campaign aimed at Latinas
Procter & Gamble’s Orgullosa program — a platform created in 2011 to celebrate, empower and fuel Latinas’ accomplishments and dreams — unveiled its Nueva Latina campaign. The campaign is a first-of-its-kind initiative designed to empower women to define what it means to be a bicultural, modern Latina.
As part of the launch, Orgullosa debuted its production of the Nueva Latina Monologues in New York City, which personifies the Latina experience in the United States. Orgullosa teamed up with Latina director and writer, Linda Nieves-Powell, to bring to life some of the real-life stories, topics and cultural themes that surround today’s Latina in an effort to spark national dialogue and participation via its online community.
Actresses La La Anthony, left, and Roselyn Sanchez attend the debut of the P&G Orgullosa production of "Nueva Latina Monologues" at the Helen Mills Theater on Wednesday in New York.
The campaign kicked off at the Helen Mills Theater where it celebrated with more than 100 VIP guests in attendance. Guests were treated to an exclusive "Chicas Night Out" experience filled with entertainment, access to a beauty bar where stylists touched up hair, and special beauty care sampling of Olay, Venus, Clairol and Pantene products, among other gifts. Special guests, Roselyn Sánchez and La La Anthony, were present as honorary guests and shared their personal anecdotes as bicultural Latinas.
Through its Nueva Latina campaign, Orgullosa aims to showcase the diversity of the Hispanic experience by soliciting real-life testimonials from its online community.
To support its Nueva Latina campaign, Orgullosa activities will include:
- Providing exclusive online access to the Nueva Latina Monologues via its Orgullosa Facebook page that will be supported by key activations to mobilize participation starting the week of March 17th;
- A special showing of the Nueva Latina Monologues at Hispanicize — the largest annual event for Latino trendsetters and newsmakers in social media, journalism, advertising, PR, film, music and innovation;
- Debut of Orgullosa’s blogger ambassadors to support Nueva Latina initiatives: Queen of Swag (Los Angeles), Traveling Latina (Chicago) and Mama Contemporánea (New York); and
- Integrated print and online media partnerships that celebrate everyday inspirational women that embody the Nueva Latina spirit.
Chico’s Q4 profit falls
Fort Myers, Fla. – Chico’s FAS’ profit was down sharply in the fourth quarter.
The retailer reported adjusted net income of $5.9 million for the quarter, ended Feb. 1, down from $32.7 million a year ago. The adjusted results exclude the impact of tax charges related to its purchase of Boston Proper, and other acquisition costs.
Net sales for the quarter decreased 6.4% to $610.2 million, compared to $651.9 million in the year-ago period. Chico’s said the decline was partly attributable to the fifty-third week of fiscal 2012. Same-store sales fell 3.4%, reflecting lower average dollar sale and transaction count, primarily as a result of the impact of a highly promotional environment in response to lower traffic, the company said.
For fiscal 2013, net sales were $2.6 billion, up 0.2% over last year. Same-store sales for 2013 decreased 1.8%.